Question

I want to get my finances properly sorted in 2026.  What would you recommend I do to ensure that I will be in a better financial position at the end of next year?

Answer

If you want 2026 to be the year your finances genuinely improve, you should do the following:

1. Take an Honest Look at Where You Are

Good financial planning starts with honesty and a willingness to confront the uncomfortable.  Start by drawing up a list of all your

• Assets
• Debts
• Income streams
• Regular payments that you are committed to

This is not about judgement, it is about awareness. You cannot improve what you do not measure.

I find that this putting these into a mind map format often helps you understand how your finances fit together.

2. Re-examine Your Life Priorities

Money should follow life — not dictate it.  The question to ask at the beginning of a new year is not “How much should I invest?” but “Where am I going?”

Life priorities shift quietly over time while financial plans often don’t.

If your investments, insurance and cash flows are still structured for a life you no longer live, friction and anxiety creep in. A good plan should feel aligned, not restrictive.

3. Review Your Budget and Cash Flow

The purpose of a budget is not to deprive you. It is to make sure your money is working intentionally. Start with cash flow:

• What comes in
• What goes out
• What remains

Look for inefficiencies like subscriptions you no longer use and insurance premiums that haven’t been reviewed in years. Even small monthly adjustments can create meaningful surplus over time — surplus that can be redirected towards savings, investments or peace of mind.

A budget is a key element of a financial plan. If you do not know how to draw up one, I have a useful budget spreadsheet that I’m more than happy to share with you.

4. Review Your Risk: What Could Derail the Plan?

Will your family remain on the same financial trajectory should you be unable to work because of illness,  disability or death? 

Risk planning matters — even though it’s uncomfortable to think about.  Look at these three areas:

• Life insurance

Do you have enough life insurance to clear any debts and  cover your future salaries until such times that your youngest child will no longer be dependent on you?

• Income protection

If you are unable to work because of illness or disability,  do you have insurance that will provide you with an income that is equivalent to your after tax salary for as long as you cannot work?

• Critical illness

No matter how good your medical aid is,  getting a critical illness will hurt your family budget. If you don’t have a decent emergency fund, you should consider getting critical cover which pays out a cash lump sum when you are diagnosed with a serious medical condition.

5. Review Your Investments: Are You Still in the Right Mix?

Markets never stand still  and your investment strategy shouldn’t either. A strong investment plan is built to manage risk across different economies, asset classes and currencies.

Because shares performed well last year, it’s worth checking whether your portfolio has become too heavily exposed to the stock market. In the same way, with the rand having strengthened, now may be a good time to review the balance between your local and offshore investments.

A well-constructed portfolio doesn’t rely on getting one outcome right. It is designed to support your financial goals in a wide range of market conditions.

An annual investment review isn’t a nice-to-have — it’s essential

6. Revisit Estate Planning — Especially If Life Has Changed

We often delay estate planning because thinking about death feels uncomfortable and far away — until it suddenly isn’t.

A new year is a good time to check the basics:

• Is my will still right for my situation?
• Are my children still minors?
• Are my beneficiary nominations up to date?
• Does my estate plan still make sense?

Do not procrastinate. Having your assets in the wrong structures can result in a lot of unnecessary costs and delays when it comes to finalising your estate.  I often see offshore bank accounts left untouched “for later”, even when they should be integrated into a sinking fund to make inheritance easy.

A Final Thought

One of the quiet goals of good financial planning is simplification. When things become too complex, costs rise, confusion sets in, and mistakes happen.  The new year is a good time to ask: What can be consolidated, clarified or eliminated? 

You don’t need to overhaul your entire financial life in January. You need to take a clear-eyed look at where you are, where you are going, and what might stand in the way. 

Find a wise and trustworthy financial planner and work with him or her.  Good financial planning is not about perfection. It is about progress — made consistently, reviewed regularly, and adjusted as life unfolds.

If there is one thing worth committing to this year, it is this: don’t drift financially. Choose a direction — and plan for it.